Q. What is a foreclosure or a court ordered sale?

A.  Foreclosure happens when mortgage payments get missed, and the lender, usually a bank called the mortgagee, exercises its right to take possession of the property.  This is always the least favourable option for the lender because the mortgagor (the person who borrowed money from the bank) would have been a more valuable client had they made consistent payments over the course of the amortization period 25-35 years.  The courts will issue a date at which the premises must be vacated and after that date everything left behind comes with property.  The courts will also appoint a Realtor to market the property.

 

A.  All offers are taken to the bank.  If one of them is accepted then a new court date is set to complete the sale.  When the matter is seen by a judge in court, the value of the accepted offer is revealed.  The judge will then grant a recess at which time counter offers will be accepted in sealed envelopes.  Anybody can submit an offer to the court, including the original offerer.  After the recess the judge will review all the offers and accept the best one. 

 

A.  You need a realtor there to draft an enforceable contract that protects you.  Also the best offer might not be the highest one.  A quick closing date will look more appealing than a longer closing date at a higher price. 

 

 

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